Arizona Real Estate License Practice Exam 2026 - Free Real Estate Practice Questions and Study Guide

The correct answer is that the beneficiary supplies the funds for a loan secured by a trust deed. In the context of a trust deed arrangement, the beneficiary is typically the lender who provides the financing to the trustor (the borrower). When a borrower secures a loan with a trust deed, they are giving the lender a claim against the property as collateral for the debt. This creates a legal relationship where the beneficiary has the right to receive the loan payments and, if necessary, to foreclose on the property if the trustor defaults on their obligation.

The trustor is the property owner who borrows the funds, but they are not the ones supplying the funds. The mortgagor typically refers to a borrower in a mortgage arrangement, which is slightly different than a trust deed. Additionally, the trustee, who may hold the title to the property, is not the lender and does not provide funds; their role is to act on behalf of the beneficiary and carry out the instructions according to the trust deed. Therefore, the beneficiary stands as the correct choice for who supplies the funds in this scenario.